5 Negotiation Hacks for the Next Time You Buy a New Car
There’s really no magic to buying a new car. In fact, if you just do your research and show up to the dealership knowing what you want and approximately the price that you want to pay, you’ll likely get exactly what you’re looking for. After, the salesperson wants to sell a car just as much as you want to buy one, so why not make it as easy as possible? Speaking of making the process easy, here are five negotiation hacks for the next time you buy a new car.
Show up with another dealer’s quote
As part of your research process, we can’t stress enough the importance of doing the majority of your car shopping online. For example, if you’re shopping for a 2020 Honda Civic EX, then find three of the closest Honda dealership near you and visit their websites. Check out the inventory that each of them has online and sees if they have the configuration of the Civic that you’re looking for. Whether or not they do, submit your information to each one of them and wait.
Within an hour, or the next 24 hours, you should receive quotes, or at least a response, from all of them. Choose which one suits your budget best, ask if they can get the car that you’re seeking, and set an appointment with them. When you meet with them in person, remember to bring the other quotes with you so that you can show them that you’ve not only done your research, but you have other options if the deal falls through. By doing this, you’re more likely to get what you want from the get-go.
Appraise your trade beforehand
Are you planning to trade in your current car? Then take it to Carmax or Carvana first to get it appraised. Those two retailers operate exclusively in the used car market space and they typically pay more than the average dealership. On top of that, they quote they give you its typically good for seven days, so you can take that quote to the dealership and let them know that you have a value in mind.
If the dealership that you’re doing business with refuses to match the trade appraisal that you have, then simply don’t make it part of the deal. Just trade it into Carmax or Carvana afterward.
Know your Fico 8 credit score
Another part of the research process that you should know is your credit score. Not your online Credit Karma score, but your actual FICO 8 credit score, which is what most dealers pull when they check your credit. When you buy a new car, the dealer is going to check your credit score whether you plan to lease or finance, so knowing the credit score that they are going to pull will give you the peace of mind that you know what you’re getting into before you settle on the final sales numbers.
At the very least, ask them to throw in extra products
While you’re going over the final selling price with the sales person, ask them if they can throw in all-weather floor mats. Why not? Asking never hurts and you never know, you might get something for free.
Get your own financing
Lastly, if you’re planning to finance the car instead of leasing, we strongly advise that you get your own financing settled beforehand. Most credit unions, and possibly even your own bank, have lower rates than what the dealership can get for you and, chances are, the dealer is just going to mark up the rate anyway. So get your own financing, and if the dealer can end up beating it, then you’ll win either way.